Raise the Unichain Core Pool caps for USDC from 10M → 15M (supply) and 8M → 12
M (borrow) to accommodate rapid organic growth while preserving market safety.
Current utilisation already reaches 100% of the new 10M supply cap just two weeks after approval and Unichain holds over $97M USDC liquidity.
• Largest two suppliers = 58 % of deposits, both are self loopers (supply & borrow
USDC).
• Chaos Labs stress tests (20 % price shock) show no shortfall even at 15M borrow.
Risk Mitigations
• Phase caps: if utilisation >80 % for 7 consecutive days, rerun risk simulations.
Chaos Labs recommends a significant increase to the supply and borrow caps for USDC on the Venus Unichain deployment, in response to a marked rise in on-chain liquidity coupled with near-full cap utilization. Since its listing on Venus, USDC liquidity on Unichain has grown rapidly, now exceeding $270M in aggregate LP positions, with more than $95M in accessible sell-side liquidity.
This strong liquidity profile, combined with the fact that self-looping strategies with minimal liquidation risk drive the majority of USDC activity on Unichain, provides a favorable risk environment for expanding protocol exposure.
Accordingly, Chaos Labs supports raising the USDC caps to:
Supply Cap: 30M
Borrow Cap: 27M
These updated limits will allow the Venus protocol to accommodate growing demand while maintaining robust risk controls, capitalizing on favorable liquidity conditions and usage patterns.
Market
Asset
Current Supply Cap
Recommended Supply Cap
Current Borrow Cap
Recommended Borrow Cap
Unichain
USDC
10,000,000
30,000,000
8,000,000
27,000,000
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this recommendation.
